New declaration form “Modelo 40” for the reporting of payments through ATM and other electronic means
Tax Alert 11-2018
Ordinance no. 64/2018, of 5 March was published today, which approves the new declaration form and respective filling instructions called “Modelo 40 - Value of Payment Flows”, through which credit institutions, financial companies and other companies providing payment services must comply with the obligation to report information relating to credit and debit card payment flows or other electronic payment methods made through them to taxable persons who earn income from category B of the IRS and IRC, without in any way identifying the principal of the payment orders.
This new declaration now indicates the means of payment used in order to include other electronic payment methods in addition to credit and debit cards, such as dual or mixed cards, prepaid cards or virtual cards, as well as payments made by transfer through "ATM References" or "ATM Transfers", regardless of the method used (ATM’s, banking portals or others).
It is further stated that entities providing payment services and acting as aggregators of payment collections destined for third parties (for example ATM references providers) must report through this statement the breakdown of the amounts received on behalf of their customers, with the identification of the values and respective beneficiaries.
This declaration must be submitted by the entities mentioned above through electronic transmission of data until the end of July of each year, and the declaration form now approved shall be used for the communication of payment flows made as of January 1, 2017 and in the following years.
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